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You pay for car insurance for one reason: to cover the costs you incur in an accident. However, if your insurance company fails to meet its obligations as outlined in the policy, you may wonder about the legal recourse available.
Can you sue your insurance company after a car accident? Our attorneys answer this question below.
Reasons You Might Sue Your Own Insurance Company
In some cases, policyholders may have grounds to pursue legal action against their insurer. Either way, it’s important to weigh the facts and make an informed decision with the aid of an experienced legal professional. Below are a few reasons that may provide grounds to file a lawsuit against your insurer.
It Did Not Offer a Fair Payout
Your insurance company is responsible for providing a fair payout up to your coverage limits. If your accident resulted in $20,000 worth of damages and your insurer is only offering $10,000, this may be grounds to pursue legal action.
You can start by appealing the adjuster’s decision with the help of an attorney. Provide further evidence to prove your need for additional compensation. If the insurer refuses to budge, you may need to take legal action against the insurance company to seek a higher payout.
It Denied Your Claim Unfairly
Keep in mind that insurance companies often have valid reasons for denying claims. However, if yours denied your claim for an unfair or illegitimate reason, you may be within your rights to sue for a claim denial.
Unfair claim denials are examples of bad-faith insurance practices, which occur when an insurer acts unreasonably when handling a claim. A lawyer can help you navigate a bad-faith claim and seek an adequate payout for your car accident, plus any additional expenses you have incurred due to the insurer’s behavior.
It Breached Your Insurance Contract
When you purchase insurance, you enter a contract with the insurer. Both of you are required to uphold your end of the bargain.
For you, that involves paying your insurance premiums and deductibles and filing claims within the terms of the policy. For your insurer, that involves paying out claims that meet the policy terms and providing reasonable, fair payments.
An insurance company breaches this contract when it denies a claim unfairly, provides an inadequate or unfair payout, or otherwise fails to uphold its duty to you as a policyholder. You may have the right to sue your insurance company for this breach of contract.
How To Sue Your Insurance Company
If your insurance provider acted in bad faith, contact a claims attorney experienced in this area to weigh your legal options.
You will likely start by appealing the insurer’s decision internally. Your attorney can help you provide compelling evidence to show why you need a higher payout or why your claim meets your policy terms.
If your insurance adjuster is acting unfairly, you may request that a different adjuster be assigned to your case. If the new adjuster also acts in bad faith, the next step may be legal action.
Many insurance lawsuits settle out of court. Your attorney can help you reach a fair dispute insurance settlement that covers the value of your original claim, your legal fees, and non-economic damages resulting from the insurer’s actions.
Let Us Help You Navigate a Bad-Faith Insurance Lawsuit
Can you sue your insurance company after a car accident? You can, in some instances, and if your insurer is acting unfairly or unreasonably, taking this step may be necessary to pursue appropriate compensation.
Bryan Garrett PLLC is here to guide you through the legal process. Contact our bad-faith insurance attorneys today at (405) 369-4498 to schedule a consultation.
FREQUENTLY ASKED QUESTIONS (FAQ):
Q When can I sue my insurance company after a car accident?
A: You can sue if your insurer denies your claim unfairly, offers an inadequate payout, or breaches your insurance contract.
Q: What are examples of bad-faith insurance practices?
A: Bad-faith practices include unfair claim denials and unreasonable delays or underpayments of legitimate claims.
Q: What should I do if my insurance claim is denied?
A: First, appeal the decision with an attorney. If the issue persists, you may need to take legal action against the insurance company.
